Avoid taking the easy funding options when things get hard
Farm incomes are being hit and profits squeezed by the drop in farm gate prices. It’s leading to cash-flow problems for many farmers. While quick, short-term alternatives for finance sometimes look the easiest option to help struggling farmers out of cash shortages, we caution that these are often expensive and can be damaging.
The farm profits squeeze is being reflected in the level of borrowing by farm business and being seen in farm sales reports.